Perhaps the saddest part of the tale of deceit by Greg Mortenson, author of Three Cups of Deceit, is not that he stole money from his charity, lied about his charming story of being nursed back to health and didn't buid the schools he claimed to have built.

The saddest part of the story is that he made us believe we could win the cultural war in Afghanistan if only we would do good works like build schools. He played on our sentiments, in particular, by insisting we could change the nation's culture by educating its young girls.

Every U.S. soldier in Afghanistan was expected to read the book, and our mission changed from getting the bad guys to liberalizing Afghanistan.

It was a fool's errand that has cost us many lives and has contributed to many deaths and instability in both Pakistan and Afghanistan. It has also cost us a lot of money and mired us in a war that can't be won.

That is the danger of idealism. On person spins a pretty story about how we can change the world. A whole nation buys it. Now we are in trouble.

Nobody in America would disagree that it would be better if Afghanistan were to have a more tolerant culture. But you don't teach tolerance by occupying a country. You don't change a culture through force of arms. We should know that by now. Our pacification efforts in Vietnam only served to alienate more and more of the population while hardening our enemy. Once we left Vietnam, the government no longer had a reason to support such a militarist approach and the government today continues to move toward being a more open society.

Perhaps it will take much longer for societies like Afghanistan's to become more open, to protect women's rights than we would like. But that is not something we can accelerate through use of force. That change must come from within the culture.

Meanwhile, spending so much on defense weakens our ability to spend on important needs here at home.

We simply have to admit that we cannot be the policeman of the world. We don't have the resources or the authority, and we don't have much of a track record of success.

Investors do not lack opportunities to deploy their capital, but being able to generate respectable returns is much more difficult. Part of the problem is finding unique investment opportunities with significant upside in a crowded market. The best option may be to put money to work in a privately-held company.

But private companies pose challenges when it comes to understanding their business, and analysis of the company may be fraught with pitfalls. Or it may be that investors are simply not aware of the opportunity in the first place.

There is, however, an important trend that is clearly discernable in relation to family-held businesses. Wealthy families and individuals are increasingly attracted to the idea of providing capital directly to family businesses as part of their overall investing strategy. And the attraction is reciprocated – family-owned businesses are increasingly open to the idea of wealthy families and individuals providing capital.

At Cascadia Capital, we are seeing a rapid increase in the practice of families investing in families, which can be a highly effective solution for both businesses and investors. Family businesses can be attractive investments, particularly for other family businesses, private companies, individuals, or family offices, which are wealth management companies investing on behalf of a single family or individual. Family run businesses often employ management styles that these investors understand well and can offer portfolio diversification without the hefty fees charged by private equity funds and investment firms; fees that, over time, can add up to millions of dollars.

According to a recent survey by the Family Office Exchange, about 70 percent of family offices now pursue this strategy of direct investing. This may be, in part, due to a shift by family offices seeking to bypass layers of fees and a lack of transparency and control that are inherent to the private equity fund model. Instead, many family offices now prefer to invest directly on a deal-by-deal basis offering more direct control, additional flexibility for longer-term holds, and lower fees.

From the perspective of family businesses, a significant number are considering alternative solutions to meet their strategic objectives. In the event of a sale, an acquisition by another family can be a compelling solution compared to a private equity or strategic buyer transaction. And when seeking financing for business activities, direct investments from family offices can offer significantly more flexibility than funding from private equity firms that are beholden to rigid criteria and fixed investment periods.

The benefits for family businesses of having a direct relationship with their investors or buyers can be numerous. For example, if a family is looking to sell its business, family office buyers can provide liquidity and the opportunity for owners to exit without having to sell to a competitor. If a family is looking for additional financing to fund growth, direct family office investments can offer more favorable terms than other traditional sources of financing.

Importantly, wealthy families and individuals are more likely to take a long-term view of their investment and are not constrained by exit strategies devised to maximize value within a given time period. Further, these investors often made their money owning and operating successful companies and, as a result, are more likely to understand the nuances and unique challenges of family run businesses.

This investment trend, while also being experienced in other parts of the country, is gaining momentum in the Pacific Northwest. We are increasingly finding private direct investments to be an effective solution for our family-owned business clients and our family office clients.

Choosing the right investment partner is one of the most challenging decisions a family business can make. We have worked with many private, family run businesses to design long-term, flexible capital solutions and introduce our clients to suitable family office and private investors with common objectives.

For family offices, like any investment opportunity, buying into family businesses can be very attractive, but it is not without risk. Prior to investing, proper analysis calls for extensive financial due diligence to ensure interests and incentives are well aligned in the transaction. Success depends on ensuring both a structural and cultural fit. We actively encourage family business owners and family investors to work with experienced advisors to carefully explore every available option before determining the best course of action.